Consider renting out your house in retirement
Posted by Lucy Wooldridge
Renting out your house during retirement could be a good way to supplement income while maintaining possession of the family home.
That is according to the Association of Residential Letting Agents (ARLA), which has said that rising rents has made this an increasingly attractive option to many retirees.
While in the past many people entering retirement had to sell their home and downsize to a smaller property to provide themselves with extra funds, now they have the alternative of renting out a smaller property to live in and putting their own home on the lettings market.
"With many potential buyers struggling to secure a mortgage, letting your family home rather than selling offers a strong alternative," said ARLA president Tim Hyatt.
ARLA's research shows an increasing number of people are using the private rented market to fund their retirement, with more than two-ifths (42 per cent) of today's landlords having originally invested with a view to creating a retirement nest-egg.
"ARLA members also report that achievable rent levels are increasing, while demand for good quality rental properties remains high," added Mr Hyatt.
"While market conditions remain so inclined, it could be prudent to let out the family home, and use the monthly rental income to invest in renting a smaller retirement home."
The organisation has published a number of tips for those renting out their homes for their first time, detailing essential landlord responsibilities such as using a tenancy deposit scheme and notifying the mortgage provider and home insurance company.
It also advises those becoming a landlord to consider using professional property management services.
"Enlisting a managing agent to oversee the property can be of great assistance, especially if you are moving away from the area," said ARLA.
"At the very least, working with a lettings agent to advertise and fill your home should make the process smoother."
Social media